Page 24 - PowerPoint Presentation

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

Goodwill or gain on bargain purchase

• Goodwill or gain on bargain purchase is measured as

the difference between (A) and (B):

• (A) the sum of the following:

• the fair value of the consideration transferred

• the recognised amount of any non-controlling interests in the

acquiree

• if the business combination is achieved in stages, the fair value of

any previously held equity interest in the acquiree

• (B) the recognised amount (usually fair value) of the

identifiable assets acquired and liabilities assumed

• If the difference is a positive amount (debit), goodwill is

recognised.

• If the difference is a negative amount (credit), then a gain

from a bargain purchase is recognised.

24